Why is the reverse repurchase operation of national debt sold?
Because the reverse repurchase of treasury bonds is essentially a pledge loan of treasury bonds, in the reverse repurchase of treasury bonds, the investor is the lender of funds, and selling is equivalent to selling funds, while the price shown in the reverse repurchase of treasury bonds is the price of funds, that is, the annualized rate of return of treasury bonds.
Nowadays, in order to avoid misleading investors, many trading software change selling to placing orders.
In the reverse repurchase of national debt, after the investor places an order, the interest rate of the investor is fixed, and the subsequent price fluctuation has nothing to do with the investor, so the higher the price when placing an order, the better.
The reverse repurchase of government bonds will have a good annualized rate of return when the market demand for funds is high, such as the end of the month, the end of the season, and before some major holidays.
The above is about the sharing of reverse repurchase of national debt, and I hope it will help everyone.